Investment Rating - The report assigns a rating of "Buy" to the company with a target price of 103.01 CNY, compared to the current price of 77.43 CNY [5]. Core Insights - The company aims to create a "Chinese version of TPU" to seize opportunities in AI inference, leveraging its subsidiaries to penetrate the AI consumer electronics market. The consumer segment is expected to realize its potential soon, while enterprise orders are rapidly increasing, indicating a broad future growth space [2][10]. - The company is projected to achieve revenues of 12.51 billion CNY, 16.07 billion CNY, and 19.54 billion CNY from 2025 to 2027, respectively, with a focus on optimizing its revenue structure through both consumer and enterprise segments [10][17]. Financial Summary - Total revenue is expected to grow from 506 million CNY in 2023 to 1.95 billion CNY in 2027, reflecting a compound annual growth rate (CAGR) of approximately 21.6% [4][17]. - The net profit attributable to the parent company is forecasted to improve from -383 million CNY in 2023 to -208 million CNY in 2027, indicating a reduction in losses over the forecast period [4][17]. - The company’s gross margin is expected to increase from 20.94% in 2024 to 29.84% in 2027, driven by improvements in both consumer and enterprise segments [19]. Revenue and Profit Forecast - Consumer segment revenue is anticipated to grow at a rate of 20% to 21% from 2025 to 2027, reaching approximately 4.87 million CNY, 5.89 million CNY, and 7.07 million CNY, respectively [14][15]. - Enterprise segment revenue is expected to see significant growth, with projections of 99.49%, 50.23%, and 30.11% year-on-year increases from 2025 to 2027, resulting in revenues of 4.96 million CNY, 7.45 million CNY, and 9.69 million CNY [15][16]. - Industry segment revenue is forecasted to grow modestly at 2% annually, reaching 2.59 million CNY, 2.64 million CNY, and 2.69 million CNY from 2025 to 2027 [16]. Valuation Analysis - The report utilizes both PS and PB valuation methods, concluding a reasonable valuation of 369.62 billion CNY, corresponding to a target price of 103.01 CNY [21][22]. - The company is expected to maintain a PS ratio of 23 times by 2026, reflecting its growth potential in the AI inference chip market [21][22]. Market Position and Strategy - The company is recognized as a leading player in the AI sector, focusing on AI inference chips and aiming to capitalize on the rapid growth of the AI market, which is projected to expand significantly in the coming years [25][44]. - The strategic acquisition of Qiancheng Technology is expected to enhance the company's capabilities in integrating AI technology with consumer electronics, thereby accelerating its market penetration [14][45].

Group 1: Digital Currency and Financial Infrastructure - The People's Bank of China has released an action plan for the management and service system of digital RMB, set to officially launch on January 1, 2026 [1] - As of November 2025, digital RMB has processed a total of 3.48 billion transactions, amounting to 16.7 trillion yuan [1] - The digital RMB app has opened 230 million personal wallets, with 18.84 million unit wallets established [1] Group 2: Investment Funds and Capital Markets - The establishment of the Chengtong Science and Technology Investment Fund (Jiangsu) with a capital of 10 billion yuan, focusing on venture capital and private equity investments [2] - Two ETFs from Huaxia Fund have been listed in Thailand using the DR model, marking a significant step in the internationalization of Chinese ETFs [5] Group 3: Company Capital Increases - Dongguan Jimu Machinery Co., a subsidiary of Huawei, has increased its registered capital from 3.89 billion yuan to approximately 4.689 billion yuan, a rise of about 21% [3] - Guangzhou Huitian Flying Car Manufacturing Co. has raised its registered capital from 650 million yuan to 900 million yuan, an increase of approximately 38% [4] - Guangzhou Yu Xin Integrated Circuit Manufacturing Co. has increased its registered capital from 6.5 billion yuan to 7.5 billion yuan, a rise of about 15% [6] Group 4: Technological Innovations - AI² Robotics has launched the world's first modular embodied intelligent service space, "Zhimofang," in Beijing and Shenzhen, with plans to deploy 1,000 units across various commercial and cultural venues in the next three years [7][8] Group 5: Regulatory Changes - The Ministry of Finance and the State Taxation Administration have announced that tobacco companies cannot deduct advertising expenses from taxable income [9] - The State Administration for Market Regulation has introduced new regulations to standardize food contract manufacturing practices, effective December 1, 2026 [10] Group 6: Product Development - Zhonghao Xinying's CEO announced that the second generation of TPU products is set to launch next year, following the successful rollout of the first generation in 2023 [11]

Group 1 - The company, Jingjia Micro (300474.SZ), has not yet engaged in TPU-related business [1] - The primary focus of the company is on the research, development, production, and sales of high-reliability electronic products [1] - The company's products mainly involve the fields of graphics display control, small specialized radar, and chip sectors [1]

Nobody Expects the TPU Transition https://t.co/kRQwbYzzvk ...